It turns out the creature in question is the infamous Pedobear, an internet meme so ancient it dates past 4chan all the way back to its Japanese predecessor 2channel, before it evolved into an icon used as a symbol and tongue in cheek warning about internet pedophiles, especially on 4chan's /b/. After some coverage of the "creepy" app on The Smoking Gun, Apple has apparently pulled Dancing Cuddle Bear from the app store, making it once again safe for concerned parents and people who don't like to see women's filthy hot bare ankles.